Palau Population: 21,108

After three decades as part of the UN Trust Territory of the Pacific under US administration, this westernmost cluster of the Caroline Islands opted for independence in 1978 rather than join the Federated States of Micronesia. A Compact of Free Association with the US was approved in 1986 but not ratified until 1993. It entered into force the following year when the islands gained independence.

Palauan (official on most islands) 64.7%, Filipino 13.5%, English (official) 9.4%, Chinese 5.7%, Carolinian 1.5%, Japanese 1.5%, other Asian 2.3%, other languages 1.5% (2000 census) note: Sonsoral (Sonsoralese and English are official), Tobi (Tobi and English are official), and Angaur (Angaur, Japanese, and English are official)

chief of state: President Tommy REMENGESAU (since 17 January 2013); Vice President Antonio BELLS (since 17 January 2013); note - the president is both the chief of state and head of government

head of government: President Tommy REMENGESAU (since 17 January 2013); Vice President Antonio BELLS (since 17 January 2013)

cabinet: NA (For more information visit the World Leaders website )

elections: president and vice president elected on separate tickets by popular vote for four-year terms (eligible for a second term); election last held on 6 November 2012 (next to be held in November 2016)

bicameral National Congress or Olbiil Era Kelulau (OEK) consists of the Senate (9 seats; members elected by popular vote on a population basis to serve four-year terms) and the House of Delegates (16 seats; members elected by popular vote to serve four-year terms)

elections: Senate - last held on 6 November 2012 (next to be held in November 2016); House of Delegates - last held on 6 November 2012 (next to be held in November 2016)

highest court(s): Supreme Court (consists of the chief justice and 3 associate justices organized into appellate trial divisions; also within the Supreme Court organization are the Common Pleas and Land Courts) judge selection and term of office: justices nominated by a 7-member independent body consisting of judges, presidential appointees, and lawyers, and appointed by the president; judges appointed until mandatory retirement at age 65

The economy consists of tourism and other services such as trade, subsistence agriculture, and fishing. Government is a major employer of the work force relying on financial assistance from the US under the Compact of Free Association (Compact) with the US. The Compact took effect, after the end of the UN trusteeship on 1 October 1994. The US provided Palau with roughly $700 million in aid for the first 15 years following commencement of the Compact in 1994 in return for unrestricted access to its land and waterways for strategic purposes. Business and leisure tourist arrivals numbered over 109,000 in 2011, for a 27% increase over 2010. The population enjoys a per capita income roughly double that of the Philippines and much of Micronesia. Long-run prospects for tourism have been bolstered by the expansion of air travel in the Pacific, the rising prosperity of industrial East Asia, and the willingness of foreigners to finance infrastructure development. Proximity to Guam, the region's major destination for tourists from East Asia, and a regionally competitive tourist infrastructure enhance Palau's advantage as a destination.

no TV stations; a cable TV network covers the major islands and provides access to rebroadcasts, on a delayed basis, of a number of US stations as well as access to a number of real-time satellite TV channels; about a half dozen radio stations with 1 government-owned (2009)

Defense is the responsibility of the US; under a Compact of Free Association between Palau and the US, the US military is granted access to the islands for 50 years, but it has not stationed any military forces there (2008)